If you’re relatively new to cryptocurrency, one of the main aspects concerning you is the amount of energy used by miners to maintain the blockchain. And the interesting part is that some people believe that this technology will have a big impact on the planet, due to the increased amounts of energy it consumes.
Is this just unjustified fear?
On the other sides, Bitcoin enthusiasts (as well as those fancying other currencies) would call this FUD, which stands for fear, uncertainty, and doubt. As a side note, this is actually an old strategy, used in marketing to confuse your competitors and keep them from buying a product in a corporate environment, ruled by a culture of ‘cover your rear’ and fear, says Forbes.
This entire theory originates in the domains that could lose way more than they’re doing it now, if the blockchain technology gains more territory. One of the best examples is the Bank for International Settlements, considered a core piece of the global banking infrastructure.
The institution says that considering the world’s current population of 7.6 billion, there are just 3 million ATMs, almost the same number of machines as there are ASICs mining Bitcoin. Also, Bitcoin is using the same amount of energy as the banking sectors ATMs. This leaves the business to consume, with 1 million branches and resources drain from 60 million people and their associated overheads.
Blockchain must become friendlier with energy
However, there’s one aspect we need to consider: blockchain will evolve and will become more energy efficient, transforming energy consumption into an issue just for those who haven’t examined it carefully.
Bitcoin, despite its fluctuating price, alongside other cryptocurrencies, have the potential of replacing gold as an international asset of last resort. Still, let’s not forget that there is not enough energy – electricity, that is – laid down for the future, so we won’t be surprised if this increasing popularity of digital assets leads to an actual energy shortage. Combine this with the fact that Europ wants petrol and diesel gone by 2030 and cryptocurrency mining could turn into an issue. However, we doubt that nobody will think about taking some measures regarding this…